Canadian Money Forum banner

1 - 11 of 11 Posts

·
Registered
Joined
·
1 Posts
Discussion Starter #1
HELP.

The only things I fill out on my taxes are T4s - I live at home, I'm single, not in school (don't judge me I'm moving this year).
I moved from one tax bracket into the next this year; I made a total of $49,703.67 between 2 jobs.
My one income was $46,494.99 and they taxed me $7,085.79.
My second income was $3208.68 and they DID NOT tax me (yes I am going to fix that this year).

So you move from the first tax bracket into the second at $44,701. So there is $5002.67 to be taxed at 22% rather than the 15%.

My question is, my return says I owe $1100.87. However, 15% of $44,701 is $6705.15. 22% of $5002.67 is $1100.59. So why isn't that extra $380.64 that my job took off being applied to make what I owe only $720.23?
 

·
Registered
Joined
·
2,827 Posts
Try doing it manually with Schedule 1 from the T1 general to see where the error lies. Also, are you sure the discrepancy is coming from the federal section? Could be an issue with your provincial tax owing that you are not considering.

And don't worry. We won't judge you for living at home to save money :). (You are in your 20s though right? :biggrin: )
 

·
Registered
Joined
·
3,247 Posts
HELP.

I made a total of $49,703.67 between 2 jobs.
There is your answer. When you work at two jobs, neither considers the other when determining your withholding taxes. They both assume you will have a personal exemption tax credit and they also are using lower tax brackets, since they cannot add the other jobs income. Because of this, you will always owe money at tax return time, when both incomes are added together and we find out that you are only eligible for 1 personal exemption tax credit.

Your math above, forgot to include provincial tax rates and it also did not include your personal exemption tax credit.

To fix this in the future, you will need to ask one of them to withhold more tax or keep some money aside to pay the amount due when you do your tax return.
 

·
Banned
Joined
·
546 Posts
HELP. My one income was $46,494.99 and they taxed me $7,085.79.
My second income was $3208.68 and they DID NOT tax me (yes I am going to fix that this year).
Your first employer only knows your income for the year was $46,494.99; your second employer only knows your income for the year was $3208.68. I suppose you could request your second employer deduct 30% or whatever, buy why ...
 

·
Registered
Joined
·
10,366 Posts
+1 to Optsy's response. To be sure you are doing it right AND getting all the right credits due to you, you need to actually methodically work throuth the T1 tax return, either manually on paper, or via tax software. Your return is simple enough to do manually and that is always a good way to go. If you want to do it with tax software, there are a number of freebies such as StudioTax, or UFile online.
 

·
Registered
Joined
·
3,197 Posts
- 15% and 22% are only the federal portion of the income tax. You have not accounted for the provincial portion.
- You have also not accounted for the federal and provincial tax credits.
- As others have suggested, fill out a T1 and see how it works.
 

·
Registered
Joined
·
7,412 Posts
T

Your math above, forgot to include provincial tax rates and it also did not include your personal exemption tax credit.
Also, on the provincial tax calculations,

if your non refundable tax credits are less than the tax payable and your taxable income is above $20,000 you will
have to pay the Ontario Health premium, which is then added to the Ontario tax payable.
 

·
Registered
Joined
·
748 Posts
Seconding the suggestion to use the calculators at taxtips.ca. They're pretty neat for a quick calculation. Though honestly it's not a bad idea to go through the hand calculations as well if you want a better understanding of how it works.

I live at home, I'm single, not in school (don't judge me I'm moving this year).
And don't worry. We won't judge you for living at home to save money :). (You are in your 20s though right? :biggrin: )
Off topic... sheesh, I have been out of school for nearly 6 years now and still live at home... man, time flies.
 

·
Registered
Joined
·
19 Posts
You balance owing is due to the employment income you have (T4 slips).
The balancing owing is determined through the tax bracket you are in as well as the federal and provincial tax credits you would qualify for.
 
1 - 11 of 11 Posts
Top